What are my loan consolidation options?

Federal Student Loan Consolidation

Federal student loan consolidation is a fixed-rate refinancing program that combines all of your existing federal student loans into one new loan. Consolidation can be a helpful tool for managing your finances, providing more flexibility during the repayment period.

Benefits of Federal Student Loan Consolidation

  • Cut your monthly student loan payment
  • Simplify your finances down to only one loan and one payment
  • Access alternate payment plans from the U.S. Department of Education
  • Renew eligibility for deferments and forbearances
  • No application fees, co-signers or credit checks required

Which Loans Qualify for Federal Student Loan Consolidation?

Most federal education loans are eligible for consolidation, including:

  • Federal Stafford Loans
  • Federal PLUS Loans
  • Federal Perkins Loans
  • Health Education Assistance Loans (HEAL)
  • Nursing Student Loans
  • Some existing Federal Consolidation Loans
  • Other eligible federal student loans, which are listed on the consolidation application

Private non-federal student loans may not be included in a federal consolidation loan.

Private student loan consolidation is different. Some financial institutions will allow borrowers to include federal education loans in a private consolidation loan. In some cases, this may yield a lower interest rate. But, you will lose your federal loan benefits if you consolidate your federal loans into a private loan consolidation.

Monthly Payment Relief

One of the key benefits of consolidating your federal student loans is payment relief. By combining all of your student loans into one consolidation loan, you can increase your repayment term from the standard 10 years to up to 30 years (depending on the amount of your education debts), which may reduce your payment. 

With a lower monthly payment, you’ll have more money available to cover living expenses and accelerate repayment of higher interest rate debts. Because there are no prepayment penalties, you can make larger payments to reduce your loan balance when it becomes affordable. This may allow you to pay off your student loans sooner.

Learn more about how student loan consolidation works in this step-by-step tutorial. 

What are my loan consolidation options?